Briefs / Retailer News

Supervalu Banners Seeing Rebranding Efforts

January 10, 2014

Supervalu is rebranding all of its banners and will continue its focus on private labels in those banners.

.”We have launched or we’ll launch shortly rebranding campaigns in all of our retail banners where our customer messaging has been disjointed and often times confusing,” Sam Duncan, Supervalu president and CEO, told analysts Thursday morning. “When complete these banners will have a much more clearly defined identity, which we will be communicating across all platforms, including in-store signage, weekly ads, customer emails, mobile devices and banner web pages.

“These campaigns create a much cleaner look to how each banner presents itself to its customers, which is a dramatic departure from our prior look.”

Duncan advised analysts to see the Shop ‘N Save website for an example of the rebranding efforts.

Private label will also continue to be a focus as these rebranding efforts take place.

“Another area where our retail banners are making gains is in private brands, where we are running ahead of our internal sales penetration goals and where we have been able to generate significant savings from a cost of goods perspective,” said Duncan.

“Our private brand sales penetration has increased 75 basis points on a year-to-date basis compared to last year and we know we still have a significant opportunity in front of us.”

Meanwhile, the retailer’s Save-A-Lot banner continues to shine, where corporate IDs improved sequentially for the fifth straight quarter coming in at positive 5.4 percent.

“Save-A-Lot results this quarter continued to reflect the benefits from the fresh cut meat program that we are rolling out to our corporate stores,” said Duncan.

He also pointed to the discount banner benefiting from a renewed focus on produce across the entire store network. According to Duncan, Save-A-Lot continues to see momentum around its produce program following its nationwide produce seminars, the implementation of more rigorous standards for screening produce coming into its DCs, added quality assurance staff, and more tailored regional assortments.

“For the quarter, corporate store customer counts and average ticket were both up compared to a year ago,” he said.

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